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Topic: WSJ: China Buying Sparks Bitcoin Surge (Read 652 times)

legendary
Activity: 1904
Merit: 1074
June 05, 2016, 09:31:32 AM
#10
I think the statistics from china are inflated.  I can imagine they lead the way but i doubt they are making 92% of trades.  Does huobi take a trading fee comparable to western platforms?

I am with you on that partner, I think there are huge manipulation involved in those statistics. The Chinese exchanges are not being audited and do not adhere to the same strict regulations, as the likes

of KYC/AML regulations in the USA, so anything goes. The Chinese also mine the most coins, so it would just be natural for them to push some of these coins through 3rd party services to generate

fiat income. They not directly linked to banks at this stage, because it's not allowed in that country.  Sad
hero member
Activity: 826
Merit: 1000
June 05, 2016, 08:43:51 AM
#9
I think the statistics from china are inflated.  I can imagine they lead the way but i doubt they are making 92% of trades.  Does huobi take a trading fee comparable to western platforms?
newbie
Activity: 55
Merit: 0
June 05, 2016, 08:05:07 AM
#8
China has been always a pumping center like november in last year chinese exchanger are the main to pump price and same happening currently.

I bought some bitcoins when it was lower. Hope it continues to be pumped before I cash it out.
legendary
Activity: 994
Merit: 1000
June 01, 2016, 10:30:03 AM
#7
China has been always a pumping center like november in last year chinese exchanger are the main to pump price and same happening currently.
newbie
Activity: 55
Merit: 0
June 01, 2016, 10:04:36 AM
#6
It is automated? I doubt moderators will think WSJ site is dodgy. I find it odd that WSJ is not trusted.

Why is Wall Street Journal website consider as a suspicious link?

Key points:

1) Huobi and OKCoin, two Chinese exchanges, now collectively account for some 92% of global trading in bitcoin.

2) The surge in bitcoin buying this weekend could be the latest sign of how Chinese investors are moving money between asset classes quickly in search of high returns. In the past year, equities, bond and commodities markets in China have in turn seen massive surges of new investing, often followed by a collapse in prices as funds have moved elsewhere.

3) Investors are worried about the decreasing value of the yuan. The Chinese are protecting their investments by converting yuan into bitcoin.


China Buying Sparks Bitcoin Surge
Source: The Wall Street Journal

[Suspicious link removed]j.com/articles/china-buying-sparks-bitcoin-surge-1464608221


By GREGOR STUART HUNTER and  CHAO DENG
Updated May 30, 2016 8:09 p.m. ET

Quote

Chinese investors are pumping up bitcoin again, sending prices up nearly 16% in the past four days, just two years after the country was at the center of a boom and bust in the crypto-currency.

The four-day surge in bitcoin since Friday has added $1.2 billion in market capitalization for all bitcoin in circulation, according to data from blockchain.info. On Monday, prices moved up as high as $525.49 per bitcoin, though that’s still well below the all-time high of about $1,151 in November 2013.

Chinese bitcoin exchanges have been operating despite past efforts by Beijing to curb trading in the currency, which is not subject to any central authority and which can be traded almost instantly across borders.

Huobi and OKCoin, two Chinese exchanges, now collectively account for some 92% of global trading in bitcoin.

The surge in bitcoin buying this weekend could be the latest sign of how Chinese investors are moving money between asset classes quickly in search of high returns. In the past year, equities, bond and commodities markets in China have in turn seen massive surges of new investing, often followed by a collapse in prices as funds have moved elsewhere.

“There’s a lot of hot money in China that has to go somewhere,” says Du Jin, chief marketing officer at Huobi. Huobi has seen a surge of new registrants in the past one month, he said.

Expectations that new supply of the virtual currency will decrease next month could also be behind the latest price surge. The creation of bitcoin via a complicated computing process called “mining” gets more challenging over time, thanks to a mechanism that cuts the number of bitcoin that can be created in half every four years in order to limit supply.

But industry participants also say a number of China-specific factors are also in play.


Stories of scams in peer-to-peer financing have sent Chinese investors familiar with the most innovative forms of investing to bitcoin specifically, says Huobi’s Mr. Du.

The bitcoin network, composed of traders around the globe accessing virtual platforms via their computers and the Internet, also allows a discreet way for a Chinese to move money beyond the country’s tightly-controlled borders.

Bitcoin currently trades at a 7.2% premium when priced in Chinese yuan on mainland bitcoin exchanges compared with counterparts pricing the currency in U.S. dollars, according to industry tracker Bitcoinity.org.

This premium in Chinese prices has persisted throughout the year, suggesting that demand from the country has accounted for much of bitcoin’s recent gains, says Zennon Kapron, founder of financial technology consultancy Kapronasia and author of a book on bitcoin.

Investors are worried about the decreasing value of the yuan and “it seems that China is leading a lot of the movement,” he adds. “People are protecting their investments [by converting yuan into bitcoin].”

sr. member
Activity: 266
Merit: 250
Why is Wall Street Journal website consider as a suspicious link?

Key points:

1) Huobi and OKCoin, two Chinese exchanges, now collectively account for some 92% of global trading in bitcoin.

2) The surge in bitcoin buying this weekend could be the latest sign of how Chinese investors are moving money between asset classes quickly in search of high returns. In the past year, equities, bond and commodities markets in China have in turn seen massive surges of new investing, often followed by a collapse in prices as funds have moved elsewhere.

3) Investors are worried about the decreasing value of the yuan. The Chinese are protecting their investments by converting yuan into bitcoin.


China Buying Sparks Bitcoin Surge
Source: The Wall Street Journal

[Suspicious link removed]j.com/articles/china-buying-sparks-bitcoin-surge-1464608221


By GREGOR STUART HUNTER and  CHAO DENG
Updated May 30, 2016 8:09 p.m. ET

Quote

Chinese investors are pumping up bitcoin again, sending prices up nearly 16% in the past four days, just two years after the country was at the center of a boom and bust in the crypto-currency.

The four-day surge in bitcoin since Friday has added $1.2 billion in market capitalization for all bitcoin in circulation, according to data from blockchain.info. On Monday, prices moved up as high as $525.49 per bitcoin, though that’s still well below the all-time high of about $1,151 in November 2013.

Chinese bitcoin exchanges have been operating despite past efforts by Beijing to curb trading in the currency, which is not subject to any central authority and which can be traded almost instantly across borders.

Huobi and OKCoin, two Chinese exchanges, now collectively account for some 92% of global trading in bitcoin.

The surge in bitcoin buying this weekend could be the latest sign of how Chinese investors are moving money between asset classes quickly in search of high returns. In the past year, equities, bond and commodities markets in China have in turn seen massive surges of new investing, often followed by a collapse in prices as funds have moved elsewhere.

“There’s a lot of hot money in China that has to go somewhere,” says Du Jin, chief marketing officer at Huobi. Huobi has seen a surge of new registrants in the past one month, he said.

Expectations that new supply of the virtual currency will decrease next month could also be behind the latest price surge. The creation of bitcoin via a complicated computing process called “mining” gets more challenging over time, thanks to a mechanism that cuts the number of bitcoin that can be created in half every four years in order to limit supply.

But industry participants also say a number of China-specific factors are also in play.


Stories of scams in peer-to-peer financing have sent Chinese investors familiar with the most innovative forms of investing to bitcoin specifically, says Huobi’s Mr. Du.

The bitcoin network, composed of traders around the globe accessing virtual platforms via their computers and the Internet, also allows a discreet way for a Chinese to move money beyond the country’s tightly-controlled borders.

Bitcoin currently trades at a 7.2% premium when priced in Chinese yuan on mainland bitcoin exchanges compared with counterparts pricing the currency in U.S. dollars, according to industry tracker Bitcoinity.org.

This premium in Chinese prices has persisted throughout the year, suggesting that demand from the country has accounted for much of bitcoin’s recent gains, says Zennon Kapron, founder of financial technology consultancy Kapronasia and author of a book on bitcoin.

Investors are worried about the decreasing value of the yuan and “it seems that China is leading a lot of the movement,” he adds. “People are protecting their investments [by converting yuan into bitcoin].”

newbie
Activity: 55
Merit: 0
Yes, and watch out for when the Fed goes ahead and raises rates as is now inevitable. This is likely to trogger the next bout of chinese capital flight into amongst other things BTC

I see. I am untrained in economics, what is the relationship between Fed rates and Chinese capital flight?
legendary
Activity: 1358
Merit: 1014
More and more mainstream newsletters are going to start reporting on Bitcoin's price surge , which in return will do nothing but make the price even higher as more and more people become aware of it. This is how I learned about Bitcoin, it was on the news briefly when we hit the last ATH, but this time is different,Bitcoin is way more mature and solid and ready to destroy the last ATH. Next stop 2000$.
hero member
Activity: 938
Merit: 501
Yes, and watch out for when the Fed goes ahead and raises rates as is now inevitable. This is likely to trogger the next bout of chinese capital flight into amongst other things BTC
newbie
Activity: 55
Merit: 0
Key points:

1) Huobi and OKCoin, two Chinese exchanges, now collectively account for some 92% of global trading in bitcoin.

2) The surge in bitcoin buying this weekend could be the latest sign of how Chinese investors are moving money between asset classes quickly in search of high returns. In the past year, equities, bond and commodities markets in China have in turn seen massive surges of new investing, often followed by a collapse in prices as funds have moved elsewhere.

3) Investors are worried about the decreasing value of the yuan. The Chinese are protecting their investments by converting yuan into bitcoin.


China Buying Sparks Bitcoin Surge
Source: The Wall Street Journal

[Suspicious link removed]j.com/articles/china-buying-sparks-bitcoin-surge-1464608221


By GREGOR STUART HUNTER and  CHAO DENG
Updated May 30, 2016 8:09 p.m. ET

Quote

Chinese investors are pumping up bitcoin again, sending prices up nearly 16% in the past four days, just two years after the country was at the center of a boom and bust in the crypto-currency.

The four-day surge in bitcoin since Friday has added $1.2 billion in market capitalization for all bitcoin in circulation, according to data from blockchain.info. On Monday, prices moved up as high as $525.49 per bitcoin, though that’s still well below the all-time high of about $1,151 in November 2013.

Chinese bitcoin exchanges have been operating despite past efforts by Beijing to curb trading in the currency, which is not subject to any central authority and which can be traded almost instantly across borders.

Huobi and OKCoin, two Chinese exchanges, now collectively account for some 92% of global trading in bitcoin.

The surge in bitcoin buying this weekend could be the latest sign of how Chinese investors are moving money between asset classes quickly in search of high returns. In the past year, equities, bond and commodities markets in China have in turn seen massive surges of new investing, often followed by a collapse in prices as funds have moved elsewhere.

“There’s a lot of hot money in China that has to go somewhere,” says Du Jin, chief marketing officer at Huobi. Huobi has seen a surge of new registrants in the past one month, he said.

Expectations that new supply of the virtual currency will decrease next month could also be behind the latest price surge. The creation of bitcoin via a complicated computing process called “mining” gets more challenging over time, thanks to a mechanism that cuts the number of bitcoin that can be created in half every four years in order to limit supply.

But industry participants also say a number of China-specific factors are also in play.


Stories of scams in peer-to-peer financing have sent Chinese investors familiar with the most innovative forms of investing to bitcoin specifically, says Huobi’s Mr. Du.

The bitcoin network, composed of traders around the globe accessing virtual platforms via their computers and the Internet, also allows a discreet way for a Chinese to move money beyond the country’s tightly-controlled borders.

Bitcoin currently trades at a 7.2% premium when priced in Chinese yuan on mainland bitcoin exchanges compared with counterparts pricing the currency in U.S. dollars, according to industry tracker Bitcoinity.org.

This premium in Chinese prices has persisted throughout the year, suggesting that demand from the country has accounted for much of bitcoin’s recent gains, says Zennon Kapron, founder of financial technology consultancy Kapronasia and author of a book on bitcoin.

Investors are worried about the decreasing value of the yuan and “it seems that China is leading a lot of the movement,” he adds. “People are protecting their investments [by converting yuan into bitcoin].”

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